Cologne and perfume are not inexpensive. With most perfumes and colognes costing approximately $1 per 1ml, every spray or use is not as cheap as you thought. After all, if you think about it, we are paying close to $100 for 100ml of scented water. Is perfume really worth the money? Some people may think that $1 per use may be a reasonable amount to pay to smell fresh and nice throughout the day. For those on a budget, this could be a total waste of money.
Margins on perfume are enormous due to the low costs of production. Homogenous bottles and formulas contribute to lower production costs where processes can be automated. Automation decreases labor costs while increasing efficiency and productivity. Once the formula and process of manufacturing a certain perfume has been determined, the manufacturing process is very easy. Perfume brands produce millions of bottles of perfume and cologne a year. Every bottle they produce and sell earns them a healthy margin.
The most costly aspect of selling cologne and perfume is the marketing. Brands spend hundreds of millions of dollars to advertise the range and gain exposure. The more people know about their brand, the more likely they are to buy the product. This is why they run campaigns and advertise in magazines or newspapers to promote their brand of perfume. In addition, they pay millions to Hollywood movie stars, music artists and models to promote or use their perfume. Click here for the best selling perfumes for women. The more popular the artist, the more followers and fans the brand will get exposed to.
Thousands of tester bottles are sent throughout the world to be displayed in shops, counters, department stores, pharmacies and shopping malls to entice shoppers. Salespeople want to expose the scent of the perfume to as many people as possible so that the scent stays with them. People remember scents extremely well and can be hooked onto smells they like. Also, when they test out the perfume or cologne on themselves, the scent remains with them, being exposed to whomever they meet throughout the day.
Apart from these, other costs such as distribution, packaging and labor costs are minimal. If you think about it, how much does it cost to produce 100ml of perfume? What consumers are paying for is the brand behind the perfume and its association to a famous brand ambassador. Consumers may like the scent that a perfume emits, but a cheaper more cost-effective deodorant may do the trick. Deodorants also last longer than perfume so that it does not have to be replaced so often.
The perfume industry is extremely profitable as long as the perfume appeals to a wide market. However, the public needs to ask themselves if they really require perfume or cologne and if it provides them with value for money for their hard earned dollar. This expensive liquid is not a necessity and is merely a luxury that some cannot afford. Every dollar spent on perfume or cologne is lining the pockets of these famous artists and rich executives behind the brand.